Bitcoin is trading sideways around $27,200, showing little price movement recently. Analyst Bob Loukas believes this range-bound action will continue into December.
He is watching the 4-year cycle, which remains intact and suggests Bitcoin is still in an accumulation phase following the massive bull run in 2021. In the intermediate term, Loukas does not expect significant gains for the rest of 2023.
A key level he is monitoring is the impending “weekly cycle low” that is due in December. The weekly cycle refers to the typical 6-12 week rhythms and rotations that Bitcoin tends to follow between highs and lows.
Reaching the weekly cycle low while still range-bound would be a bullish sign, showing buyer demand is absorbing selling pressure. However, there is decent risk of a breakdown below the range, which would complete the bearish weekly cycle.
Unless there is a new catalyst like SEC approval of a Bitcoin ETF, Loukas believes new all-time highs are unlikely in 2023. The range to watch is between $20,000-$30,000. Breaking below $20,000 could confirm the weekly cycle low and open the doors for a drop to $10,000-$15,000.
In summary, Loukas is cautiously monitoring Bitcoin’s trading range and cycles. The weekly cycle low due around December will be a key test to determine if accumulation will continue or if a breakdown is imminent. Patience is warranted until a clearer trend emerges.
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